The abrupt drop in home phone line demand has led several telecom companies to adopt new business to stabilize revenues, and keep their dividends strong, according to a release from Bedford.
The Bedford Report examines the outlook for companies in the Telecom sector and provides equity research on Frontier Communications and Windstream Corporation.
Windstream Corporation has been working to transition its business more towards broadband in hopes of cashing in on the growing levels of mobile data consumption. Most companies in the telecom industry are seeing a shift away from wire-line communications. While this does not necessarily pertain to internet access, consumers are looking to their mobile phones as their primary connection as opposed to old fashioned "wall connections."
Presently Windstream pays an annual dividend of $1.00 per share for a hefty yield of around 7.6 percent.
Frontier pays an annual dividend of $0.75 for a massive yield of around 9.2 percent. The company says that it plans to hold the dividend steady for the next two years while they fully integrate their recently acquired wirelines. As of the most recent quarter Frontier had 5.6 million access lines -- up from 2.1 million a year earlier.
Yahoo recently announced that, later this year, Frontier customers will be upgraded to a co-branded Frontier-Yahoo email experience powered by Yahoo Mail.
The Bedford Report provides market research.
Report information:
bedfordreport.com/FTR
bedfordreport.com/WIN
((Comments on this story may be sent to newsdesk@closeupmedia.com))
No comments:
Post a Comment